What’s Wrong with This Chart?

We had another busy session in the markets today – Crude Oil keeps running higher, the E-Mini’s keep slumping lower, while Gold and Euro look comfortable trading inside narrow ranges…

But the one thing that stands out like a sore thumb on these charts tonight is what didn’t happen – it feels like something’s wrong – did you notice it too?

Crude Oil Combines Two Chart Patterns

Crude Oil is bullish with a Spike & Channel into a bull flag pattern tonight, which tells me to be ready for two different types of trade set-ups tomorrow morning…

The flag pattern tells me to wait for a breakout-pullback using the high of the channel, while the Spike & Channel tells me to look for a deep pullback into a nested failure pattern.

E-Mini S&P Tells Me to Expect the Bounce

E-Mini S&P is bearish and back in “four leg down” territory again this evening, which tells me to anticipate a similar bounce into sell set-ups tomorrow morning.

The one curve ball, however, is this small trading-range developing on the chart, which warns us against falling for some easy traps.

Nasdaq Doesn’t Make Sense – Do You See It Too?

Nasdaq is bearish and trying to re-test today’s low, which should have been quite easy after the buyers failed to hold control earlier in today’s session…

Which prompts me to ask the question… “What’s wrong with this chart?”

Because the biggest clue on the Nasdaq isn’t what happen today, but rather what DIDN’T happen on the way lower, and that’s our focus in tonight’s analysis.

Gold Needs to Clear This Big Obstacle

Gold is bearish into a trading-range this evening, and sellers are trying to sell it back down to re-test the morning’s lows…

The challenge, however, is this rising support trend-line, which tells me to look for a ‘bull trap’ instead of a failure set-up to sell off the highs.

Euro Sellers Are Waiting for the Bounce

Euro is bearish into a narrow trading-range, which tells me to look for sell set-ups above the high of the range using a buyer-failure pattern.

The big clue, however, is the recent bull spike higher – which tells me to anticipate another try for the bulls, at which point we can sell into their failure when the time is right.

“Pain is temporary. It may last a minute, or an hour, or a day, or a year, but eventually it will subside and something else will take its place. If I quit, however, it lasts forever.”